SPACEHAB, Inc., a leading provider of commercial space services,
congratulates the International Space Station (ISS) partners and RSC
Energia on the successful launch of the Russian service module,
Zvezda, early today.

The addition of this third module to the ISS, enabling continuous
habitation, is expected to increase demand for space station resupply.
SPACEHAB, a pioneer in the business of space logistics, stands ready
to meet the pressurized and unpressurized cargo transportation needs
of space station partners and users throughout ISS assembly and
operations.

Work is well under way on SPACEHAB’s third resupply mission to the
ISS, scheduled to launch in September on the National Aeronautics and
Space Administration’s (NASA’s) Space Shuttle Atlantis. The company is
providing a pressurized Logistics Double Module, an unpressurized
Integrated Cargo Carrier, and a SPACEHAB Oceaneering Space Systems
(SHOSS) box to carry critical equipment and supplies to the ISS.

SPACEHAB flew these same carriers on NASA’s second ISS resupply
mission in May.

“We applaud the Russian Aviation and Space Agency for its
successful launch of Zvedza, and we applaud the ISS partners for
seeing this project to fruition,” said SPACEHAB Chairman and Chief
Executive Officer Shelley A. Harrison following the launch. “The
nations of the world are establishing a permanent presence in space,
together, and SPACEHAB is prepared to support this effort.”

“We also congratulate RSC Energia on the successful completion of
Zvezda,” said SPACEHAB President and Chief Operating Officer David A.
Rossi, “and we look forward to serving an expanding market for space
station utilization.”

SPACEHAB supported seven successful resupply missions to the
Russian space station Mir, preceding the commencement of ISS assembly.
As an ISS partner, NASA was committed to supplying critical items for
astronauts and cosmonauts aboard the Mir.

On these Mir resupply missions, NASA used SPACEHAB’s pressurized
logistics modules to carry food, computers, instrumentation, an oxygen
generator, and other critical supplies that were transferred to the
Mir through a docking tunnel.

Following seven successful Mir resupply missions, SPACEHAB
developed the ICC and SHOSS Box, unpressurized carriers that can
transport thousands of pounds of equipment and astronaut provisions
for use outside the ISS.

SPACEHAB can load important cargo into its modules and carriers
even after they are installed in the Shuttle’s cargo bay and the
shuttle is on the launch pad, a valuable service that gives the ISS
partners greater flexibility in completing cargo manifests for
assembly and resupply missions.

“Much of what is in the Shuttle cargo bay for a space station
resupply mission is packed efficiently in SPACEHAB modules and
carriers,” according to Dr. Harrison.

SPACEHAB anticipates supporting at least three resupply missions a
year to the ISS and at least one Shuttle research mission a year (with
its Research Double Module) in the space station era. In 2003, the
company intends to launch its own space station habitat module,
Enterprise(TM).

This module, to be launched on a Russian rocket and attached to
the Russian side of the ISS, will be the world’s first commercial real
estate in space. Enterprise(TM) will also break new ground by housing
the world’s first commercial television and Internet broadcasting
studio in space.

SPACEHAB subsidiary Space Media(TM), Inc., is developing plans for
TV and Internet content production and distribution from
Enterprise(TM).

Founded in 1984 and with more than $100 million in annual revenue,
SPACEHAB is a leading provider of commercial space services. SPACEHAB
is the first company to commercially develop, own and operate
habitable modules that provide laboratory facilities and logistics
resupply aboard NASA’s Space Shuttles.

The company also supports astronaut training at NASA’s Johnson
Space Center in Texas and provides commercial satellite processing
services for Boeing’s Delta and Lockheed Martin’s Atlas launch
vehicles near Kennedy Space Center in Florida.

This release contains forward-looking statements that are subject
to certain risks and uncertainties that could cause actual results to
differ materially from those projected in such statements.

Such risks and uncertainties include, but are not limited to,
whether the company will fully realize the economic benefits under its
NASA and other customer contracts, the timing and mix of Space Shuttle
missions, the successful development and commercialization of new
space assets, technological difficulties, product demand, timing of
new contracts, launches and business, market acceptance risks, the
effect of economic conditions, uncertainty in government funding, the
impact of competition, and other risks detailed in the Company’s
Securities and Exchange Commission filings.

SPACEHAB’s Role in

International Space Station (ISS) Assembly and Resupply

July 2000

Assembly Flight 1A/R, November 20, 1998: Russian Proton rocket
launched Zarya control module. (No SPACEHAB payload.)

Assembly Flight 2A (STS-88), December 4, 1998: U.S. Space Shuttle
Endeavour launched Unity connecting module (Node 1) with two
Pressurized Mating Adapters that was linked to Zarya. (No SPACEHAB
payload.)

Resupply Mission 2A.1 (STS-96), May 27, 1999: SPACEHAB Logistics
Double Module (LDM) and Integrated Cargo Carrier (ICC) and SPACEHAB
Oceaneering Space Systems (SHOSS) box launched on Shuttle Discovery,
carrying two tons of supplies to ISS including Russian Strela cargo
crane components.

Resupply Mission 2A.2a (STS-101), May 19, 2000: SPACEHAB LDM, ICC
and SHOSS box launched on Space Shuttle Atlantis, carrying more than
four tons of payload to ISS including Strela crane components and SOAR
(Space-Integrated Global Positioning Integrated System (SIGI)
Operational Attitude Readiness) technology-demonstration payload.

Assembly Flight 1R, July 12, 2000: Russian Proton rocket to launch
Zvezda service module, providing life support and living quarters for
ISS crew.

Resupply Mission 2A.2b (STS-106), September 2000: SPACEHAB LDM,
ICC and SHOSS box to be launched on Space Shuttle Atlantis, carrying
more than four tons of payload.

Assembly Flight 2R, fall 2000: Russian Soyuz rocket with three
crew members including U.S. astronaut William M. Shepherd, initiating
permanent habitation of ISS.

Assembly Flight 3A (STS-92), 2001: U.S. Space Shuttle Discovery to
launch Integrated Truss Structure, third Pressurized Mating Adapter,
Ku-band communications system, and attitude-control gyros.

Assembly Flight 7A.1 (STS-105), 2001: SPACEHAB ICC and two
SPACEHAB SHOSS boxes to be launched on Space Shuttle Discovery. ICC
will carry micrometeorite debris panels for the Russian Zarya module.

NASA and its partners have more than three dozen ISS assembly and
resupply missions planned over the next five years. SPACEHAB
anticipates playing a role in two to three of these missions per year.
NASA’s Research and Logistics Mission Support (REALMS) contract with
SPACEHAB provides options for numerous Space Shuttle flights.